VAT on fees has cost the independent school sector

Pupil numbers at independent schools have dropped by around 1,000 after VAT was introduced to fees.

Figures published by the Scottish Council of Independent Schools (SCIS) found there are 25,919 pupils in the current school year, compared with 27,781 at the same point in the previous year.

Third sector bodies and campaigners have long questioned why the independent school sector gets charitable status and tax breaks.

And after mounting pressure, the UK Labour government imposed VAT on private school education and boarding fees from1 January this year.

But SCIS argue that introducing VAT will end up costing the government money.

SCIS chief executive Lorraine Davidson said: “We warned the UK Government that imposing VAT on fees would damage state education in Scotland, and harm the economy, and unfortunately we have been proved correct.

“The SCIS annual census shows thousands of extra pupils are now being educated at the taxpayers’ expense, and many young people can’t find a state school place in their local area due to the pressure this is causing on the state system.

“It’s time for the UK Government to admit it got its sums badly wrong and reverse this vindictive and flawed policy, which far from raising money for state schools, is on course to leave taxpayers footing the bill for educating thousands more pupils.

“Despite this assault on our sector, SCIS schools will continue delivering high quality education and make fees as affordable as possible. Our schools make a positive contribution to Scottish education and to communities throughout Scotland.

“We will not allow this policy to deter us from our mission to build on that work.”

Scottish Conservative education spokesman Miles Briggs said: “These stark figures show that Labour’s vindictive decision to impose VAT on independent schools is having the completely opposite effect to what they claimed.

“Their flawed policy is undermining the sector’s contribution to the economy and is putting a greater burden on Scotland’s state schools, who are already overwhelmed due to SNP cuts.”

A spokesman for the UK Treasury said: “Ending tax breaks for private schools will raise £1.8bn a year by 2029/30 to help deliver 6,500 new teachers and raise school standards, supporting the 94% of children in state schools to achieve and thrive.”